S&P 500 testing upper boundary of a bullish pennantS&P 500 IndexTVC:SPXFPMarketsSince the S&P 500 clocked a fresh record high of 7,620 at the beginning of June – and a low of 7,237 – price has been compressing between two converging lines, forming a potential bullish pennant pattern. You will note that the index recently breached the upper boundary of said pattern, but has since modestly pulled back and found support ahead of the 50-day SMA at 7,417. This – coupled with the clear-cut uptrend and yesterday’s hammer candle pattern – may eventually be enough to tempt a higher breakout. Written by FP Markets Chief Market Analyst Aaron Hill